THE INTERNATIONAL EFFECTS OF MINING PROJECTS - THE CASE OF CARAJAS IRON-ORE

Large new mineral projects often influence international mineral marke ts. The Carajas iron ore project in Brazil is a recent example. This p aper concludes that production from Carajas depressed the reference pr ice level for iron ore in the late 1980s and thus brought about both p ermanent changes to that commodity market structure and revenue losses to other iron ore producers. For this reason, the international effec ts of large projects should be taken into account by project planners during project appraisal.